EUR/USD trims losses, retakes 1.0600 and beyond

The shared currency is now looking to regain the smile, sending EUR/USD back above the 1.0600 handle.

EUR/USD attention to Fedspeak

After dropping to the area of fresh YTD lows near 1.0580 during the Asian trading hours, spot has sparked a correction higher as the greenback seems to be losing some upside momentum for the time being.

EUR remained apathetic after President M.Draghi reiterated the central bank’s readiness to use all available instruments to clinch its inflation target, noting at the same time that the recovery in the euro bloc runs at a moderate, albeit steady pace.

In addition, BuBa’s J.Weidmann argued that unconventional policy measures should be implemented with care, while inflation should pick if the output gap narrows.

In the data space, EMU’s Current Account shrunk to €25.3 billion during September, missing estimates at €31.3 billion. Across the pond, speeches by St. Louis Fed J.Bullard (voter, dovish), New York Fed W. Dudley (permanent voter, neutral), KC Fed E.George (voter, hawkish) and Dallas Fed R.Kaplan (2017 voter, neutral) should keep the attention around the buck.

EUR/USD levels to watch

The pair is now losing 0.07% at 1.0617 facing the next support at 1.0588 (2016 low Nov.18) followed by 1.0538 (low Dec.3 2015) and then 1.0519 (low Apr.13 2015). On the flip side, a break above 1.0763 (high Nov.16) would aim for 1.0826 (high Nov.14) and then 1.0848 (low Oct.25).

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